Emaar Properties, the global developer of iconic projects, net profit for the second quarter of this year jumped 146 per cent to Dh614 million as compared to Dh250 million for the same period last year.
The property developer said in a statement that its first half profit rose 82 per cent to Dh1.22 billion against Dh671 million in the first half of last year.
The Dubai-based property major reported a net operating profit of Dh1.22 billion ($332 million) for the first six months of 2012, 45 per cent more than the half year of 2011 net operating profit of Dh843 million ($230 million). The revenue for the first six months of 2012 was Dh3.921 billion ($1.068 billion), similar to the revenue for the same period in 2011.
The company’s net operating profit for the second quarter (April to June) of 2012 was Dh614 million ($167 million), an increase of 45 per cent over the second quarter 2011 net operating profit of Dh422 million ($115 million).
Revenue for the second quarter of 2012 was Dh2.1 billion ($572 million), 15 per cent higher than the revenue of Dh1.821 billion ($496 million) recorded in the first three months of the year.
Mohamed Alabbar, Chairman of Emaar Properties, said: “The real estate market in Dubai is turning around, led by the robust performance of key growth sectors including aviation, retail, hospitality, tourism and foreign trade. The city’s appeal to high net worth individuals as the ideal destination for a home is also gaining strength. Emaar’s financial results for the first half of the year reflects the growing strength of Dubai’s economy, led by the strategic initiatives outlined by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President & Prime Minister and Ruler of Dubai.
“To add long-term value to our stakeholders, we are planning on bigger growth in our home market through projects such as the Dubai Modern Art Museum & Opera House District, and the expansion of The Dubai Mall, in addition to new project launches.”
Contribution of subsidiaries
Emaar’s rental and retail business primarily comprising of Emaar Malls Group, contributed approximately Dh1.3 billion (US$ 354 million) to first half 2012 revenue, which is an increase of 23 per cent as compared to same period in 2011.
The shopping mall operations were underpinned by the strong performance of The Dubai Mall, the company’s flagship development, which hosted approximately 31 million visitors in the first six months of the year.
New projects and delivery
Reflecting the positive growth trends in the Dubai property market and in line with the company’s development strategy for 2012, Emaar unveiled approximately 200 luxury apartments, Panorama at The Views, which was fully sold on the very first day of public launch. Likewise, the launch of 18 exclusive Golf Homes and over 60 townhouses – both in Arabian Ranches – during the first half of 2012 witnessed solid investor response. Emaar recorded sales exceeding Dh1.6 billion ($436 million) in the first half of 2012 in Dubai, which is approximately five times as compared to same period in 2011.
Internationally, Emaar handed over units in Turkey, Egypt, Kingdom of Saudi Arabia and Lebanon. The international operations of Emaar accounted for approximately 11 per cent of the half year 2012 revenues.
Emaar has handed over more than 34,000 units since 2001. Emaar will continue to explore new growth opportunities, backed by a land bank of over 240 million sq metres across India, Saudi Arabia, Morocco, Pakistan, Syria, Turkey, Egypt and Jordan.